Chapter 1: INTRODUCTION

The Nezone Group was founded in 1981, set up its 1st integrated steel tubes plant at Pachim
Boragaon, NH no.-37, to manufacture steel black and galvanized tubes and pipes up to 8 inch
diameter with an installed capacity of 75,000 Tonne per annum. The Nezone Group is
multiplant manufacturer which specializes in production of ERW steel tubes. The group
enjoys a position of prominence in the eastern and north eastern region of India.
Today the Nezone group comprises of following companies
1. Nezone Tubes Limited
2. North Eastern Tubes Limited
3. Nezone Strips Limited
4. Nezone industries Limited
5. Nezone Steel (Meghalaya) Limited

The study is based on the summer internship program undertaken at North Eastern Tubes
Ltd.Guwahati, under the Organisational Guide Mr. Girish Chandra Kumar.
The duration of the study was for 2 months (16th May to 16th July).

Project Title: A study of Market Potentiality of products of Nezone Group in Guwahati.

Objectives:
To know about the position of some Nezone products in the market of Guwahati city
from the dealers/retailers.
To know about customers satisfaction regarding the Nezone products.
To have a clear understanding of Nezones market in Guwahati city.

Methodology:
The research was done through a) Primary data collection
b) Secondary data collection

a) Primary data collection is the method of collecting data from the external sources. To fulfil
the purpose of the project some questions in questionnaire format are designed both for the
dealers/retailers and the customers.
The total number of respondents is 80
Dealers/Retailers-30
Customers-50

b) Secondary data collection is the method of collecting data through

i.

The website of the company

ii.

Organisation recorded files

iii.

Personal interview with the manager of the company

Analysis:
Responses from the dealers are analysed based on information availability and shown
in tabular form and pi or bar diagram.
Responses from the customers are analysed and shown in tabular form and pi or bar
diagram.
Various internal business or marketing strategies of Nezone Group is analyzed from
information given by the company.

Chapter 2: INDUSTRIAL SECTOR PROFILE

2.1. Brief description of industry sector:
India is the worlds third-largest producer of crude steel (up from eighth in 2003) and is
expected to become the second-largest producer by 2016. The growth in the Indian steel
sector has been driven by domestic availability of raw materials such as iron ore and costeffective labour. Consequently, the steel sector has been a major contributor to Indias
manufacturing output. The Indian steel industry is very modern with state-of-the-art steel
mills. It has always strived for continuous modernisation and up-gradation of older plants and
higher energy efficiency levels. Indias crude steel production grew by 4.9 per cent year-onyear to at 8 Million Tonnes (MT) in May 2016. Total steel production in the country is
expected to increase by 7 per cent in 2016.

Pipes and tubes of all types and sizes are used in building, construction, chemical, energy and
other industrial application. The global export market of the steel pipes is stated to be close to
$ 27 billion a year with the US, Western Europe, Japan being the biggest importers. India is
one of the major exporting nations including Indonesia, Malaysia and Thailand.

Steel pipe and tube industry in India consists of firms mainly engaged in manufacturing
welded steel pipes and tubes or ferrous metal pipe or tube fittings. The building and
construction industries along with oil and gas sector are the major market place for pipes and
tubes. Significant consideration and rationalization of excess capacity has occurred in some
segments, while cost containment and improved process and quality control measures have
led to productivity gains and quality improvements across the entire pipes industry.

At the time of independence, India had a small Iron and Steel industry with the production of
about a million tonnes (MT). Many public sector units were established and thus public
sector had a dominant share in the steel production till early 1990s while the Government
was mainly focusing on developing the basic steel industry. The steel industry was
developing under a controlled regime, which established more public sector steel companies
in various segments.

Till early 1990s when economic liberalization reforms were introduced, the steel industry
continued to be under controlled regime, which largely constituted regulation such as large
plant capacities were reserved only for public sector under capacity control measures; price
regulation; for additional capacity creation producers had to take license from the
Government; foreign investment was restricted; and there were restrictions on imports as well
as exports.
After liberalization, when a large number of controls were abolished, some immediately and
others gradually, the steel industry has been experiencing new era of development. Major
developments that occurred at the time of liberalization were1. Large plant capacities that were reserved for the public sector were removed.
2. Export restrictions were eliminated
3. Import tariffs were reduced from 100percent to 5percent
4. Decontrol of domestic steel prices
5. Foreign investment was encouraged

Indian Pipes and Tubes:

Welded steel pipes
ERW steel pipes
Galvanized Steel pipes
Corrugated Steel pipes
Seamless Steel Pipes

Tubes and Pipes by shapes

Hollow Pipes
Rectangular Pipes
Round Pipes
Squares Pipes

Investments in this industry

Steel industry and its associated mining and metallurgy sectors have seen a number of major
investments and developments in the recent past. According to the data released by
Department of Industrial Policy and Promotion (DIPP), the Indian metallurgical industries
attracted Foreign Direct Investments (FDI) to the tune of US$ 8.89 billion, respectively, in
the period April 2000March 2016.

Some of the major investments in the Indian steel industry are as follows:

JSW Group plans to invest around Rs 10,000 crore (US$ 1.48 billion) at Salboni in
West Bengal to set up 1,320 Megawatt (MW) coal-based power plant, 4.8 million
tonne cement plant and paints factory over a period of next five to seven years.

National Mineral Development Corporation (NMDC) has planned to invest Rs 40,000

crore (US$ 5.93 billion) in the next eight years to achieve mining capacity of 75
Million Tonnes Per Annum (MTPA) by FY2018-19 and 100 MTPA by FY2021-22,
compared to 48 MTPA current capacity.

Posco Korea, the multinational Korean steel company, has signed an agreement with
Shree Uttam Steel and Power (part of Uttam Galva Group) to set up a steel plant at
Satarda in Maharashtra.

Iron ore output in India is expected to increase by 25 per cent to 153 Million Tonnes
in FY 2016, which in turn will help reduce iron ore imports by two-thirds to five
Million Tonnes, SAIL plans to invest US$23.8 billion to increase the steel production
to 50 MTPA by 2025.

Arcelor Mittal, worlds leading steel maker, has agreed a joint venture with Steel
Authority of India Ltd (SAIL) to set up an automotive steel manufacturing facility in
India.

Iran has evinced interest in strengthening ties with India in the steel and mines sector,
said ambassador of the Islamic Republic of Iran, Mr Gholamreza Ansari in his
conversation with Minister of Steel and Mines, Mr Narendra Singh Tomar.

Public sector mining giant NMDC Ltd will set up a greenfield 3-million tonne per
annum steel mill in Karnataka jointly with the state government at an estimated
investment of Rs 18,000 crore (US$ 2.67 billion).

JSW Steel has announced to add capacity to make its plant in Karnataka the largest at
20 MT by 2022.

Export and import of steel in India

Import and export of steel in India

10
9

In million tonnes

8
7
6
5

EXPORTS

IMPORTS

3
2
1
0
FY 11

FY12

FY13

FY14

FY15

FY16

Fiscal years
Source: Ministry of steels, JSPL Presentation, TechSci Research
Notes- FY- Indian Fiscal year (April to March), FY16- April to August,2015

2.2. Different companies in the Steel industry:

(i) Jindal Saw

(ii) Welspun Corp

(iii) Mah Seamless

(iv) APL Apollo

(v) Gandhi Spl Tube

(vi)Man Industries

(vii)Prakash Steelag

(viii)Good Luck Steel

(ix)Suraj

(xi) New Hindustan Tubes PVT. LTD.

(x) Jindal Tubes.

7

(xii)Tata Steel Limited

(xiii) Bansal Tubes Limited.

(xiv) Ratnamani Metal

(xv) RMG Alloy Steel

(xvi)Zenith Birla

(xvii) Mukat Pipes

2.3. Top 10 companies and market share of each company in the steel industry:
1. Ratnamani Metals and Tubes
Registered in September 1983 as a public limited company Ratnamani Metals &
Tubes Ltd. is now a multi-location, multi-product Company, in India, manufacturing
Tubes & Pipes in Stainless Steel/Exotic material and also Carbon Steel Pipes, in wide
size ranges, for wide spectrum of applications.
Market Capital = Rs. 3,121.43cr

2. Jindal Saw
Jindal Saw is a leading global manufacturer and supplier of Iron & Steel pipe
products, fittings and accessories with manufacturing facilities in India, USA, Europe
and UAE (MENA).
Market Capital = Rs. 2430.77cr

3. Welspun Corp
In the Line Pipe sector, Welspun has to its credit some of the most prestigious projects
including the worlds deepest pipeline project in the Gulf of Mexico, U.S.A, heaviest
pipeline project in the Persian Gulf, highest LNG pipeline project in Peru and longest
pipeline project from Canada to the US.
Market Capital = Rs.1, 811.71cr

4. Maharashtra Seamless
Maharashtra Seamless Ltd. (MSL) was incorporated on May 10, 1988. The company
was conceived after noticing huge demand and supply gap in the seamless pipe
market, which was met mostly through imports. The company has always shown
continuous urge for upgradation and expansion in all these years of its existence.
Market Capital = Rs. 1503.47cr

5. APL Apollo Tubes

Established in 1986, APL Apollo is the fastest growing steel tube manufacturer in
India, and has attained pole position in this category. The company is headquartered
in Delhi NCR, and has six manufacturing facilities that are located in Sikandrabad(3
units) (Uttar Pradesh), Bangalore (Karnataka), Hosur (Tamil Nadu) and Murbad
9

(Maharashtra). The Companys vast distribution network is spread all across India,
with warehouses cum- branch offices in 20 cities.
Market Capital = Rs. 761.87

6. Surya Roshni
Surya Group has installed capacity of 6,00,000 MT per annum to manufacture ERW
pipes from OD " to 16" according to various national & international specifications
including API5L up to Grade X80 PSL2. The group has started manufacturing of Oil
Country Tubular Goods (OCTG) as per API 5CT Gr H40, J55, K55 PSL 1 & have
supplied successfully to USA market. They are also supplying pipes confirming to AS
1074/ AS NZ 1163 and EN 10219. Besides above, their plant is supplying BLACK,
RED PAINTED, GALVANIZED & PRE-GROOVED PIPES.
Market Capital = Rs. 761.87cr

7. Gandhi Special Tubes

Gandhi Special Tubes Ltd. formerly known as GANDHI SPECIAL 07 TUBES LTD.
was a project set up by Gandhi Group. The project was for manufacturing small
diameter welded and cold drawn seamless steel tubes. All the critical equipment were
imported from Germany. The plant situated at Gujarat, started commercial production
in April 1988.
Market Capital = Rs. 386.57cr

8. Man Industries Ltd.

Man Industries (India) Ltd. is a member of the Man Group of India.
It is a leading manufacturer and exporter of large diameter Carbon Steel Line Pipes
for various high pressure transmission applications for Gas, Crude Oil, Petrochemical
Products and Potable Water. The Company has state-of-the-art manufacturing
facilities for LSAW & HSAW Line Pipes and also for various types of AntiCorrosion Coating Systems.
Market Capital = Rs. 346.42cr

10

9. Prakash Steelage Ltd.

Prakash Steelage Limited was incorporated on 09/05/1991 under the Companies Act,
1956 as Prakash Steelage Private Limited and received its Certificate of
Incorporation from the Registrar of Companies, Maharashtra, Mumbai. The Company
was subsequently converted into a public limited company on 12/08/1997 and
receiveda fresh certificate of incorporation pursuant to the change in name.
Market Capital = Rs. 207.38cr

10. Oil Country Tubular Limited.

Oil Country Tubular Limited (OCTL), is a processor of a wide range of Oil Country
Tubular Goods and Drilling Products required for the Oil Drilling and Exploration
Industry. OCTL is located near Hyderabad city, India, and is an unique facility in the
World. OCTL has earned worldwide recognition for the Quality of its products and
services.
Market Capital = Rs. 155.90cr

Note: the above information on market capital has been updated till 26/08/2016.
Source: http://www.moneycontrol.com/

11

2.4. Growth and opportunities

The liberalization of industrial policy and other initiatives taken by the Government have
given a definite impetus for entry, participation and growth of the private sector in the steel
industry. While the existing units are being modernized or expanded, a large number of new
steel plants have also come up in different parts of the country based on modern, cost
effective, state of-the-art technologies. In the last few years, the rapid and stable growth of
the demand side has also prompted domestic entrepreneurs to set up fresh Greenfield projects
in different states of the country. India is expected to become the world's second largest
producer of crude steel in the next 10 years, moving up from the third position, as its capacity
is projected to increase to about 300 MT by 2025. Huge scope for growth is offered by
Indias comparatively low per capita steel consumption and the expected rise in consumption
due to increased infrastructure construction and the thriving automobile and railways sectors.
Some of the government initiatives which are and will provide growth opportunities for the
industries in this sector:

The government has launched the National Mineral Exploration Policy (NMEP),
which will help to adopt comprehensive exploration of non-fuel and non-coal mineral
resources that would give a major boost to the economy.

Metal Scrap Trade Corporation (MSTC) Limited and the Ministry of Steel have
jointly launched an e-platform called 'MSTC Metal Mandi under the 'Digital India'
initiative, which will facilitate sale of finished and semi-finished steel products.

The Parliament of India has cleared amendments to the Mines and Minerals
Development and Regulation (MMDR) Act, which will enable companies to transfer
captive mines leases similar to mines won through an auction, and which is expected
to lead to increased Mergers and Acquisitions (M&A) of steel and cement companies.

The Ministry of Steel has announced to invest in modernisation and expansion of steel
plants of Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited
(RINL) in various states to enhance the crude steel production capacity in the current
phase from 12.8 MTPA to 21.4 MTPA and from 3.0 MTPA to 6.3 MTPA
respectively.

12

The total outlay for infrastructure in Budget 2016-17 stands at Rs 221,246 crore (US$
32.8 billion), which is expected to generate much needed demand for steel industry.

The Ministry of Steel is facilitating setting up of an industry driven Steel Research

and Technology Mission of India (SRTMI) in association with the public and private
sector steel companies to spearhead research and development activities in the iron
and steel industry at an initial corpus of Rs 200 crore (US$ 29.65 million).

State-run company Steel Authority of India (SAIL) has received an order for
supplying steel for seven warships to be constructed for the Indian Navy. This would
be the first time Navys warships will be built using Indian steel.

2.5 Share of Steel Tubes industry sector in total.

Indias crude steel production grew by 4.9 per cent year-on-year to at 8 Million Tonnes (MT)
in May 2016. Total steel production in the country is expected to increase by 7 per cent in
2016.
During FY 2015-16, hot metal production increased at a rate of 1.3 per cent year-on-year to
57.13 MT, whereas the production for sale of total finished steel stood at 90.39 MT. Indias
consumption of total finished steel increased by 4.5 per cent to 80.45 MT during FY 2015-16.
Total finished steel exports during FY 2015-16 stood at 4.08 MT, whereas total finished steel
imports stood at 11.71 MT for the same period. Indias crude steel capacity has increased 7.6
per cent to 118.2 MT.
The steel sector in India contributes nearly two per cent of the countrys Gross Domestic
Product (GDP) and employs over 600,000 people. The per capita consumption of total
finished steel in the country has risen from 51 Kg in 2009-10 to about 61.9 Kg in 2015-16.

Source: http://www.ibef.org/industry/steel.aspx
http://www.prnewswire.com/

13

Chapter 3: COMPANY PROFILE

3.1. Review of company:
Name of the company: NEZONE
Plant: North Eastern Tubes Limited
West Boragaon, Guwahati NH-37
Assam, Pin-781033
Ph-0361-2570829/30
Office: North East Tubes Limited
D.D Tower, 5th Floor, G.S Road
Christianbasti, Ghy-5
Ph-0361-2343951/52
Email id: netl@nezonesteel.com

3.2. Company Pictures and Logo:

Company pictures:

a) NETL

14

b) Nezone pipes & towers

Company logo:

3.3. Company Mission and Vision

Mission:

The mission of Nezone Group is to grow about 10% over the next five years.

To provide the best quality of their product to customers.

To expand their plants in the North Eastern region of India.

To install the modern machines for manufacturing their products.

To have the best marketing strategies to increase the awareness of the company.

Vision:

The Group aspire to be the global steel industry.

The vision of the organisation is to be globally admired that enhances the quality of
life of all people in North east through sustainable industrial and business
development.

15

The Nezone group chose to select the North east as its central operation area.
Therefore, it has enabled them to act as an infrastructural backbone in the North
Eastern India.

3.4. History of the company:

The Nezone group was founded in 1981 with standard, skills and determination. The
operation of Nezone Group is designed for cost effective production. The plant has the
capacity to handle large production and specialize in contract manufacturing.

The company set up project on manufacturer of both Black and Galvanised pipe. The Group
has supplied over 2 million MT of steel tubes since their existence making them the regions
largest and most respected supplies of such products with the largest market share.

The tubes Strategic Business Unit (SBU) of Nezone today is a leading manufacturer of
welded pipes and tubes in the country with an annual production capacity of around 75,000
tones. The tubes SBU manufacture commercial, structural and precision tubes at its Kolkata,
Guwahati, Tamilnadu, Meghalaya plant. The SBU has network of sales offices across the
country with marketing headquarters in Kolkata to provide better customer service.

Govt. of India Ministry of commerce and Industries has recognized the Nezone Tubes
Limited and Nezone Strips Limited, the Group companies of Nezone Group as an EXPORT
HOUSE in the year 2010-2011.

The Group Companies are continuously from last 8years getting Export Excellent Awards
from the Engineering Export Promotion Council for exporting the products manufactured by
the Group Companies. The list of Export Excellent Award received by the Group Companies
are given belowi.

Award for outstanding contribution

ii.

Award for Highest Performance

iii.

Award for Highest Exporter

iv.

All India Certificate of Export Excellence

v.

Award as Star Performer

16

3.5. Different plant as well as plant location of the company:

ASSAM:
Pachim Boragaon, NH 37, P.O. Gotanagar, Guwahati 781033, Assam, India
Email: netl@nezonesteel.com

MEGHALAYA:
EPIP Industrial Area, Umtru Road, Raja Bagan, Byrnihat 793101
Email: ntls.works@nezonesteel.com

WEST BENGAL:
Delhi Road, Village Chakundi, P.O. DCC Township, Dankuni 712 310, District
Hooghly (W.B.)
Email: nslfactory@nezonesteel.com

TAMIL NADU
NEZONE TUBES LIMITED, Plot no. M-4, Phase-III, SIPCOT Industrial Complex, M.K
Puram Post 632405, Ranipet, Vellore District, Tamil Nadu
Email: ranipet@nezonesteel.com

17

3.6. Product range of Nezone:

All the products of NEZONE are ISO: 9001:2000 marked
Companies

Products
1. M.S black and galvanised steel
tubes

and

pipes:

IS:1239

&

IS:1161
Nezone Tube Limited , Kolkata (W.B)

2. Rectangular and square Hollow

section tubes. IS:4923
3. Scaffoldings
1. Cold rolled strips and precision

Nezone Strips Limited, Kolkata (W.B)

tubes
2. Black and galvanised steel tubular
poles. IS:2713

Nezone Industries limited, Meghalaya

1. M.S black pipe- structured

1. M.S black and galvanised steel
tubular poles. IS:2713
2. High

mast

and octagonal

poles
3. Transmission
Nezone steels, Meghalaya

line

towers,

substation structures and other

galvanised structure.
4. Scaffoldings

Nezone pipes and structures, Meghalaya

1. M.S black and galvanised steel

tube and pipes. I.S: 1239, I.S:1161
2. R.H.S and S.H.S tubes. I.S:4923

North eastern tubes limited, Guwahati,

Assam

1. M.S

black

pipes

I.S:1161

I.S:1161
2. R.H.S and S.H.S tubes I.S:4923

Nezone pipes & towers Guwahati,

1. Steel tubular poles. I.S:2713

Assam

2. Scaffoldings

18

&

M.S Black pipe

MS Pipe, MS Tube refers to Mild Steel Pipe or Mild Steel Tubes used for industrial and
domestic use.
Use:
Structure:
Shed, Scaffolding, Railing, Stairs, Tents, Doors,
Industrial:
Tools, Trolleys, Machinery, Supports, Barricading, Poles,
Automobiles:
Chassis, Steering, Tools, Parts,
Domestic:
Doors, Railings, Stairs, Decoration, Tents, Fencing,
Furniture:
Chairs, Table, Racks, Storage System

19

Galvanized pipe

Use:
Potable Water Supply
Tube Wells & Hand pumps
Plumbing Works
Structure, Bridge Railing
Poles / Post
Electrical Conduits
Cooling Towers
Electrical / Telecom Cable Ducting

20

Steel Tubular Pole

Use:
Light Poles in single hang & double hang,
Street Light Poles and Traffic Light Poles etc.

Scaffolding

21

Hollow section pipe

Use:
Industrial Sheds
Steel Furniture
Bridges
Low cost Steel Housing
Towers, Airports
Tripper/Trailer body
Bus Body Structures
Cranes
Material Storage Racks
Road Dividers
Railway Wagon
Coaches
Hoardings
Machine Components & Frames
Pre-fabricated House
Automobile Chassis

22

Precision tubes

Use:
Industrial Equipments
Furniture
Machinery Parts
Fencing / Railing
General Engineering Purpose
Fan Rods
Bearing Housing
Disk Antenna
Tubes for discharge electrodes
Electrical conduits & components
Gas Lighter
Bus Body Building
Automobile Industry
Bicycle Manufacturing
Umbrella Tubes

23

E-rickshaw

The company is also into manufacturing of School furniture, Playground equipments,

Infrastructure & Automotive and POP products. Nezone in collaboration with OK Play India
Limited, who first develop and designed e-rickshaw and will be manufacturing and
distributing all its electric vehicles in the eastern and the North Eastern states on India.
3.7. Size of the company:
Turnover: Nezone group has approx turnover of above Rs. 1,000 crores per annum
Manpower: North eastern tube limited (NETL) has manpower of 200 employees.
3.8. Market share:
North Eastern Tubes Limited is a public incorporated on 19 January 1989. It is classified as
Non-Govt Company. Its authorized share capital is Rs. 18,000,000.
3.9. SWOT analysis of the company:
SWOT analysis represents strength, weaknesses, opportunities and threats. It is a structured
planning method that evaluates the four elements of a project or business. It involves
specifying the objective of the business venture or project and indentifying the internal and
external factors that are favourable and unfavourable to achieve that objective.

Strengths:

Dedication of manpower.

Well equipped machineries.

24

Large production capacity.

Well maintained service.

Can reach to the customers.

Easy access of internal and external raw materials due to its ideal location.

Mainly deals with ONGC, L&T, Nalco, HPCL etc.

Weaknesses:

Inadequate marketing strategies.

No attractive logo and slogan.

Opportunities:

Growth opportunities in the domestic market.

Communication of transport is good for bringing the raw materials and dispatch of
finished goods.

The head office being in the heart of the city helps them to approach the market.

Threats:

Some machines are not modernized; the group still uses some old machines.

Many competitors have entered the market with lower price than Nezone.

3.10. Competitors of the company:

TATA:
TATA pipes enjoyed a dominant market share for more than fifty years. The tubes SBU of
Tata steel today is the largest manufacturer of a variety of steel tubes in India, with an annual
production capacity of around 4, 00,000 tones and major expansion plans to manufacture
higher sizes. Tata pipes had been a pioneer in the manufacturing of pipes, specifically meant
for plumbing applications. To meet the continually increasing demand for quality of pipes in
the plumbing segment, significant improvements in the quality of pipes have been brought
about through innovation in the pipe making and galvanizing process.

25

Hindustan:
Hindustan Pipes Limited is one of the leading manufacturers and exporters of ERW
Galvanised Steel Pipes and Tubes ranging from 15mm NB to 30mm NB conforming to
various Indian Standards with an installed capacity of 1,25,000 MT in the first unit and
1,00,000 MT in the second unit. The plants are spread over 50,000 sq. meter of land and are
equipped with the most sophisticated and automatic ERW tube manufacturing machine and
testing laboratories.
The plant produces M.S ERW Galvanised Pipes & Tubes to cater a variety of requirements of
Agriculture and Industrial usage oil, sanitary water, electrification, tubular poles, structural
ranging in light, medium, heavy series

Jindal:
Jindal Group has developed into a multi faced organisation and is one of the largest steel
producers in India with 12 plants in India.Jindal Organisation, set up in 1970 by the steel
visionary Mr. O. P. Jindal, has grown from an indigenous single-unit steel plant. Haryana to
the present multibillion, multi-locational and multiproduct steel conglomerate.
With an industry experience of 18 years, they are engaged in supplying Welded pipes and
tubes, square & rectangular Pipes and ERW Galved Pipes. Apart from these they also offer
ERW Tubes, Alloy Steel pipes & Tubes, Carbon Steel Seamless Pipes & Tubes, ERW M.S
Black Pipes, ERW Boiler Tubes. The range of welded casing pipes and welded boiler tubes is
acknowledged for its sturdy construction, high tensile strength and resistance against
corrosion and chemicals.

Bansal:
In the world of business, the Bansal Organisation is a celebrity group from an indigenous
single- unit steel plant to represent multi- billion, multi- located and multi product steel
conglomerate. The organisation is still expanding, integration and growing towards new
directions, new objectives. The pipes will be mainly for the domestic markets.
They are the manufacturer and supplier of G.I and PVC Tubes, Power transmission and
telecom towers. The pipes as a product for water transportation, has a very high position in
The Indian market due to high investments in infrastructure development in the country and it
also has a significant longer life compared to other types of products.

26

3.11. Balance Sheet of Nezone : Guwahati

Balance Sheet As At 31st March 2015

NOTE

(In Rupees)
Year Ended
Year Ended
(31.03.2015)
(31.03.2014)

EQUITY AND LIABILITIES

Shareholders fund
Share capital
Reserves and Surplus

1
2

18,000,000
133,250,571

18,000,000
132,375,579

151,250,571

150,375,579

794,138
794,138

838,662
838,662

Non-Current Liabilities
Long term borrowing
Term loan from other parties Deferred Tax
Liabilities(Net)
Current Liabilities
Short term borrowings
Trade Payable
Other current Liabilities
Short Term Provisions

3
4
5

65,982,654
191,789
44,987,614
493,826

97,402,306
8,149,900
33,503,802
891,262

TOTAL

111,655,883
263,700,593

139,947,270
291,161,511

ASSESTS
Non-Current Assets
Fixed assets
Tangible assets
Non-Current investment
Long term Loans advances

6
7
8

23,458,033
1,458,138

25,943,837
79,373
1,456,583

24,916,171

27,479,793

75,770,596
141,511,349
920,889
15,956,561
4,625,027
238,784,422
263,700,593

128,400,412
109,010,184
1,397,321
18,234,513
6,639,288
263,681,718
291,161,511

Current Assets
Inventories
Trade receivables
Cash & Bank balance
Short Term Loans & Advances
Other current assets

9
10
11
12
13
TOTAL
27

Chapter 4: DEPARTMENT DETAILS

4.1. Organizational list showing different departments:
1. HR department
2. Accounts Department
3. Production Department
4. Quality control Department
5. Maintenance Department
6. Workshop Department
7. Electrical Department
8. Store Department
9. Dispatch Department
10. Marketing Department
11. Purchase Department
4.2. Snapshot of various department:

HR Department

Accounts Department

Purchase Department

Marketing Department
28

Quality Control Department

29

Store Department

Production Department ( slitting)

30

Production department ( tubing)

31

Maintenance and workshop Department

32

Dispatch department

33

Electrical department

34

4.3. Specific area in which the training has been taken.

The training has been taken in the marketing department of North Eastern Tubes
Limited (NETL). Brief practical knowledge of the plant was given at NETL plant, located in
Pub-Buragaon, Guwahati. The market scenario of NETL was taught which I were to be
understand and implement while doing our survey across the various retailers, distributors
and wholesalers of steel tubes located in Guwahati city.

4.4. Roles and Responsibilities of Marketing:

To know the position of the company with respect to the market and the competition.

The department is responsible for creating images, messages and ideas that best
communicate the brand value.

Manage the marketing budget.

Make marketing strategy.

4.5. Staff members list and different positions holding by them:

Serial no.

Name of employee

Designation

Mr. Girish Ch. Kumar

Works manager

Mr. P.K Goel

General Manager (Finance)

Mr. Rajesh Chetri

Sr. Manager (Sales)

Mr. Nimesh Harlalka

Marketing Executive

Mr. Pankaj Bhusan Borah

Marketing Executive

Mr. Ajit Ch. Sarma

Marketing Executive

Mr. Himangshu Sarma

Marketing Executive

Mr. Rajendra Prasad Singh

Production Engineer

Mr. Nand kishore Soni

Stores Manager

10

Mr. Arun Khetawat

Commercial officer

11

Mr. Santi Ram Das

Supervisor

35

12

Mr. Amrit Ch. Das

Asst. Personal Officer

13

Mr. Homen Chakraborty

Stores Clerk

14

Mr. Diganta Kalita

Asst.

Quality

Control

Inspector
15

Mr. Pradip kr. Sarma

Supervisor ( Production)

16

Mr. Nipul Bhattacharya

Supervisor ( Production)

17

Mr. Sazzid Hussain

Maintenance Engineer

18

Mr. Chandan Choudhury

Accounts

19

Mr. Ridip Borah

Accounts

20

Miss Bhanima Das

Accounts

21

Mr. Chirantan Banerjee

Marketing Officer

22

Mr. R. N Mukherjee

Supervision( Production)

23

Mr. Ranjit Sarkar

Electrical Engineer

24

Mr. Dhiren Das

Peon

36

4.6. Departmental chart showing different positions:

Managing Director

Technical Director

Marketing Director

Works Manager

Store Manager

General Manager (Finance)

Administration Manager

Personnel Manager

Marketing Manager

Quality manager

37

My position in North Eastern ltd was Marketing Intern and trainee.

4.7. Training method adopted during training:

The method that was adopted during training was Market Research on by collecting data
from various retailers, distributors and customers across the Guwahati city. Data collections
are an essential and important part of any study or project. Without collecting appropriate
data any study or project cannot be undertaken. Data was collected by primary data collection
from a sample of (customers and retailers) and secondary data collection from file records
and organization history.
Marketing Research is a systematic and objective study of problems pertaining to the
Marketing of goods and services. It may be emphasized that it is not restricted to any
particular marketing, but it is applicable to all phases and aspects. Marketing Research is
function, which links the customers and public to the market through information used to
identify and define, marketing opportunities and problems; generates, refine and evaluate
marketing actions; monitor marketing performance; and improved understanding of market as
a process.
The data analysis technique used Two sets of questionnaires were used for the retailers and the customers.
To make the analysis easier the responses are shown in percentage.
Charts like pie, bar diagrams and tables have been used to make the analysis easier.
Personal interviews have been undertaken at different steel pipes and tubes dealers
and retailers and a sample of customers.

38

Chapter 5: DATA ANALYSIS AND INTERPRETATION

5.1. Analysis of responses from dealers
While taking random wholesalers/retailers or dealers of steel pipes, they are chosen at first
irrespective of the condition that they keep Nezone pipes or other company items. This
process has been adopted because in the Guwahati city area there are not much
retailers/wholesalers/dealers comprising of Nezone products. Also the competition with
similar other companys items was conducted.
Nezone has provision that anyone can buy directly from the factory stockyards itself which
includes B2B market.
But here in the project particularly wholesalers, retailers and that generally sells to end
consumer are taken into consideration to get overview of market of Nezone pipes.
From the analysis of the surveyed data it was found that The retailers/wholesalers like to keep Nezone products in their shops because
production is done in the city but it doesnt mean that Nezone items are the most
demanded product.
The most demanded product is from the Tata just because of its brand name.
The second demanded product is from Hindustan because its price is reasonable.
Jindal, Bansal and Nezone are giving a tough competition to each other as their sales
are almost same all the time

39

1. Which company product do you keep?

Serial No.

Company

Percentage

1.

Bansal

10%

2.

Hindustan

20%

3.

Jindal

10%

4.

Nezone

30%

5.

TATA

30%

% of products kept by the

retailers/dealers
Bansal
10%
TATA
30%
Hindustan
20%
Nezone
30%

Jindal
10%

It was found that most of the dealers/retailers keep the products from the company Tata and
Nezone. They keep Tata and Nezone products the most because of their brand name, its 30%
for both the company.

20% of Hindustan products and 10% of Jindal and Bansal products were kept by them.
We asked whether they keep products from other company or not, they responded saying that
in Guwahati city only products from the above mention companies were used the most.

During survey I found only one shop where they keep products of unbranded company but
even then they keep it as some customers dont see the quality or brand they see only the
price.

40

2. Which company products are sold the most?

Serial no.

Company

Percentage

1.

Bansal

15%

2.

Hindustan

25%

3.

Jindal

10%

4.

Nezone

17%

5.

TATA

33%

% of product sold the most

33%

25%

17%

15%
10%

Bansal

Hindustan

Jindal

Nezone

TATA

From the analysis it is found that Tata products are sold the most because of the brand name.
Hindustan products are positioned after Tata and the products are sold mostly because of its
low price.
Nezone, Bansal and Jindal are giving tough competition to each other as their percentages in
the products selling are very close to each other.

41

3. Which company product price is reasonable?

Serial no.

Company

Percentage

1.

TATA

0%

2.

Jindal

30%

3.

Nezone

3%

4.

Hindustan

60%

5.

Bansal

27%

Hindustan, 60%

Jindal, 30%
Bansal, 27%
Tata, 0%
0

Nezone, 3%
1

It is found that Jindal has comparatively lower price than Nezone. Bansal has fluctuating
price over the months and they are nearby Nezones pricing but still somewhat lower than
Nezone. Tata has highest price among the many because of the Tata brand. Hindustan has
much lower price than Nezone which is found lowest among all the surveyed for the research.

42

4. What are the Nezone Products that are sold the most?

Serial No.

Products

Number

of Percentage

respondents
1.

M.S black pipe

12

40%

2.

G.I pipe

20%

3.

Steel tubular pole

20%

4.

Scaffolding

10%

5.

Hollow section pipe

10%

6.

Angular Tower

0%

0%

Angular Tower
Hollow section pipe

10%

Scaffolding

10%

Steel tabular pole

20%

G.I pipe

20%
40%

M.S black pipe

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

M.S black pipe is the product from Nezone which is sold the most. 40% of the dealers
/retailers told about that. After that, G.I pipes and Steel tabular poles are sold the most, 20%
of both the products are sold. Again 10% of both the products i.e. hollow section pipe and
scaffolding are sold.
M.S is the most demanded product. G.I pipes and Steel tabular poles are demanded equally.
Hollow section pipe and Scaffolding both are also demanded equally but less than the above
four products.
Angular tower is not demanded.

43

5.2. Analysis of responses from customersFrom the surveyed data of the customers it was found that Most of them buy the steel products i.e. the pipes or tubes either for the brand name
or for its price.
Nezone products are known to most of them in the Guwahati city, if someone prefers
products from Nezone then its because of its availability and for its quality.
No one said about its price as its price is somewhat higher than its competitor (apart
from Tata).
There are also some customers who are not worried about the brand name or quality,
the only thing that they are worried is the price i.e. they opt for the product whose
price is low and reasonable for them.
The analysis is done among 50 customers but later it was found that there are still
many who are not aware about the Nezone group.
Total no. of customers taken is 50.
The data collected from the customers was random. No specific customers were targeted.
Some customers I met at the dealers shop. Some through friends contacts. Some from
random talking with people whom I know.
Some data was also outsourced to know about its position as a whole in Assam.

44

1. Do you use Nezone products?

Serial No.

Options

Number

of Percentage

Respondents
1.

Yes

48

96%

2.

No

4%

No, 4%

Yes, 96%

From the survey it was found that 96% of the customers use Nezone products whereas 4% of
them do not use Nezone products.
That is in Guwahati City Nezone products are known to all.

45

2. What are the products used by you from Nezone?

Serial No.

Products

Number

of Percentage

Respondents
1.

M.S Black pipe

15

30%

2.

G.I pipe

17

34%

3.

Steel tubular Pole

13

26%

4.

Scaffolding

10%

5.

Hollow Section Pipe

0%

6.

Angular Tower

0%

Angular tower 0%
Hollow Section Pipe 0%
Scaffolding

10%

Steel Tubular Pole

26%

G.I pipe

34%

M.S Black pipe

30%
0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

It was found from the above table and bar diagram that 34% customers use the G.I pipe, 30%
of them use the M.S Black pipe.26% customers use the Steel Tubular Pole whereas 10% use
the. No one responded for the product Hollow Section pipe and Angular tower.
From the survey it was found that G.I pipe is mostly used by the customers followed by the
M.S pipe, Steel Tubular Pole and Scaffolding.

46

3. Do you find Nezone product price reasonable?

Serial No.

Options

Number

of Percentage

respondents
1.

Yes

42

84%

2.

No

16%

90%
Yes, 84%

80%
70%
60%
50%
40%
30%
20%

No, 16%

10%
0%
0

0.5

1.5

2.5

It was found from the survey that 84% people or customers find the Nezone product price
reasonable while the remaining 16% find it as unreasonable.

47

4. How would you rate the Nezone products according to quality?

Serial no.

Options

Number

of Percentage

respondents
1.

Excellent

2%

2.

Good

44

88%

3.

Moderate

10%

88%

10%
2%
Excellent

Good

Moderate

88% of the customers rated the Nezone products as good in terms of quality, 10% rated
moderate while only 2% of them rated the products as excellent.

48

5. Why do you prefer Nezone products?

Serial no.

Options

Number

of Percentage

respondents
1.

Quality

41

82%

2.

Due to price

6%

3.

Easily available

12%

82%

12%
6%

Quality

Due to price

Easily available

It was found from the survey that 82% of the customers prefer Nezone Products because of
its quality, 12% prefer because it is easily available as production is done in the city itself.
The remaining 6% prefer due to its price because they found it to be reasonable as
compared to other company.

49

5.3. Marketing strategies of Nezone Group analyzed from information given by the
company:
a) Conventional Market of Nezone:
For last many years Nezone was basically manufacturers and govt. suppliers only. They only
preferred supply to various items to Govt. Departments and public sector units apart from a
few private organizations. But from last 5 years, Nezone has expanded their plans to target
private consumers also in construction of residential flats in city, private offices, houses
where small sized pipes are needed to some extent. That was due to new competition levels
arising out in Assam in small pipes market. That was a part of business expansion strategy by
producing extra amount of small steel pipes basically for private housing.
The monetary value was lesser as compared to supply to Govt. departments. Using as
reinvestment strategy and production expansion by looking at demand for small pipes and
tubes in Assam market, the company has been able to catch up pipes market very well in
home consumer segment also. Nezone is successful in private consumer market also since it
is the only manufacturer of steel pipes in entire North East.
b) Advertising of Nezone:
During the project work in Nezone tubes Ltd. their advertising strategies has been consulted
with the management persons. According to them as Nezones products are not like FMCG
items nor high valued luxury items like car so these products need not to have too much
advertisements as some other products. Who are in need of such pipes, structures, strips,
fittings, tubes are obviously going to buy these from the existing market, and these items are
not used as main structural ingredients as cements or ceramics.
As a result here normal advertising Medias are not widely used. Nezone however use their
brand name as Nezone and NTL as brand value strategy.

50

c) B2B and B2C marketing of Nezone:

B2B marketing:
B2B marketing means Business to Business marketing that is in this type of marketing a
company do business by selling its own goods to some other companies or to other business
firms. Since Nezone products can be used in many industries such as automobiles, business
making industries, pipelining in refineries, towers or tower materials can be used in telecom
and power sector companies or firms again sells those products directly or with some
modification to actual customers who ultimately use those. Many construction companies
procures pipes, strips etc. from Nezone to use in their construction part which is again their
business. So, such markets of Nezone can be considered as B2B market.
It has been identified from Companys record that Nezone has repeat consumers in case of
B2B market specially, such consumers are seemed to be fixed purchaser from Nezone.
From the management, it has been found that shortly Nezone is planning for marketing to Erickshaw industries either Govt. or private level as a part of B2B marketing expansion plan.
B2C marketing:
B2C marketing means Business to Customer type of marketing. In this type of marketing a
company or a business house go for selling their products or services directly to the end
consumers who ultimately use the products, they dont do further business by using such
products. In Nezone , normally comparatively lower valued consumers like consumers of
small pipes or tubes buyers to use in household requirements are considered as end
consumers. Now a day as a result of increase in outsourcing activities in procurement in both
public and private sectors, B2B marketing is transferring into B2C type of marketing.
From discussion with the Nezone management personnel, it is found that Nezone has been
able to create good relationship with the business houses and long term relationship can be
expected to develop.
Some Govt. Customers of Nezone from Guwahati:
1) Public Health Engineering Department, Boragaon
2) Public Work Department, Chandmari
3) Irrigation Department, Ulubari
51

4) Assam Electricity Grid Corporation Ltd. , Paltan bazar

5) BSNL, Panbazar
5.4. Pricing issue:
According to management persons of Nezone, the pricing of Nezone items sometimes faces
difficulties in the competitive market. Unlike many other companies where wage paid to
labours in Nezone are comparatively higher since it gives priority towards quality and value
as well as company being socially responsible by engaging in various social activities.
In North East region due to geographical hurdles, many at times raw materials cost goes up
which lead to increase in cost of production. As a result company sometimes have to sacrifice
their desirable profit because they cant just go for increasing price due to presence of
competitors items at competitive price and Govt. restrictions also in fixing the price limits
many times.
5.5. Overall conclusion of the analysis:
From the analysis by observing Nezone market strength and prospect in various important
PSUs, it can be derived that organizations and some departments like PWD, PHED are some
high valued long term customers of Nezone Group.
Nezone is now giving equal importance to other private parties along with Govt. contractors.
So, instead of only confining to Govt. supply, more amounts of profits are seen due to private
supplies.

52

Chapter 6: LEARNINGS AND VALUE ADDITION

6.1. Learnings and value addition during internship:
The internship was very useful for me. As an intern I learnt lot of things in 2 months. The
knowledge that I gained area) From the survey it is known to me that most of the customer came to know about
Nezone products either from the word of mouth from the retailers or from known
customers who have used Nezone product earlier. This implies that Nezone
advertisement is quite poor.

b) While doing my survey I came to know about different companies related to steel
industry which was not known to me before. Also in the process the position of
Nezone products compared to some other brand was known.

c) I also came to know that for most of the customers, quality does not matter much,
what matters for them is the price but Tata is exceptional.

6.2. Difference between practical exposure and theoretical work:

a) Theoretically, marketing is all about sales, to interact with people, know their needs,
roam different places etc. it seems very easy but practical it is not.

b) Sending any fresher to the market it is very important to give him/her a sound
theoretical knowledge of the different practical work he/she has to perform during
his/her job.

c) In marketing we can say that practical work is of more important as it will also give
you the theoretical knowledge when we go for the field work along with experience,
which we cant get in theoretical knowledge.

53

d) Practical knowledge will also help us to hone our skills by interacting with different
clients, business partners, delegates of other companies etc.

6.3. Challenges faced during internship:

1. During the research, the useful time for communicating with the key management
employees to gather the required knowledge and information was limited due the busy
schedule of work of the employees.

2. Sample sizes taken randomly are less and due to randomness, the samples may not
reflect the actual picture or errors may be there between collected and actual
information.

3. Consumers and retailers had to be convinced strongly that the information gathered
via responses had no other intention than academic research.

4. Under our mentor 9 more interns were there so he was not able to give much time, so
we didnt receive the actual scenario of our department in details.

6.4. Usefulness of the training.

1. For the purpose to fulfil my project I have to collect data from the market as well as
from the customers, so, I learnt how to deal with both the parties i.e.
dealers/retailers/wholesalers and the customers. I got to know how to talk with them
i.e. the techniques to interact with them so that they answer our questions which will
definitely help me in my future work.

2.

In many cases most of them were not interested to answer, but as my project was
related to all the data collected from the survey so I didnt lose hope and decided to be
there and wait. In short, I learn to have patience in order to fulfil my objective.
54

3. During my internship I came to know about the various steel tubes companies
particularly in the north-eastern region.

4. The working of a steel tube plant and different stages which takes place during the
production.

5. Understanding the market of steel tubes in Guwahati city and their demand

55

Chapter 7: RECOMMENDATONS AND SUGGESTIONS

Some suggestions regarding various aspects of the company:1. Though steel items like Nezone dont need too much advertising, but since from last
decade construction works and infrastructural development is highly growing, so
considering the various requirements to private sectors, as well as requirements in
some Govt. funded projects, Nezone should adopt more brand valuation strategies by
advertising in more vibrant way.

2. It has been observed that most no. of dealers selling Nezone items are situated at
Athgaon area of Guwahati city, some are there in Adabari, Fancy Bazar etc. But there
are not a high number of dealers catering all around Guwahati City.
So, to increase sales in the domestic zone, Nezone have to push some more dealers to
store and sell their highly sold items. This is important in this type of steel company
because most consumers just search in their nearest possible distance to but steel
pipes and what brand is available there, they just go for buying it, because buying
from distant may lead to transportation cost. So, Nezone has scope to influence more
and more retailers to sell their items as they have big factory in Guwahati itself.
3. Now a days use of PVC pipes has greatly a concern for the steel pipe marketers
especially in the small pipe range for use in buildings. Since PVC pipes are lighter
and cheaper, people at much case have started switching to PVC from steel pipes, so,
that is a threat for Nezone.

4. In market some competitors have prices lesser than Nezone as Jindal, Hindustan etc.
due to mass production in many parts of India. So, Nezone should try out to give more
profit margins to dealers for small pipe segment to increase sales over its competitors.

5. In domestic market segment there is scope for Nezone group to adapt a more
aggressive push strategy by looking at some other new comers in the domestic market
segments apart from the main competitors.

56

6. They can work on their advertising process, not only in newspaper or hoardings in the
roadway sides in the national highway but also on the news channels and radio
channels so that all the people of north east are aware about the Nezone group.
7. Nezone Group, Guwahati can recruit more employs.

57

References:
1. www.nezoensteel.com
2. www.nezonetubes.com
3. www.indicus.net
4. http://www.moneycontrol.com/stocks/marketinfo/marketcap/bse/steeltubespipes.html
5. http://listz.in/top-10-steel-companies-in-india.html
6. http://www.ibef.org/industry/steel.aspx
7. http://www.prnewswire.com
8. Books referred Philip kotler

58

ANNEXURE
Questionnaire for dealers/retailers/wholesaler:
Shop name: _________________________
1. Which company product do you keep?
a)Bansal b)Nezone c)Jindal d)Hindustan e)TATA
2. Which company product is sold the most?
a)Bansal b)Nezone c)Jindal d)Hindustan e)TATA
3. Which company product price is reasonable?
a)Bansal b)Nezone c)Jindal d)Hindustan e)TATA
4. What are the Nezone products that are sold the most?
a) M.S black pipe
b) G.I pipe
c) Steel tubular pipe
d) Scaffolding
e) Hollow section pipe
f) Angular tower

59

Questionnaire for customers:

1. Do you use Nezone products?
a) Yes b) No
2. What are the product(s) used by you from Nezone?
a) M.S black pipe
b) G.I pipe
c) Steel tubular pipe
d) Scaffolding
e) Hollow section pipe
f) Angular tower
3. Do you find Nezone price reasonable?
a) Yes b) No
4. How would you rate Nezone products according to quality?
a) Excellent b) Good c) Moderate
5. Why do you prefer Nezone products?
a) Due to price b) Quality c) Easily available

60

Dealers:
Dealers shops at Athgaon
M.S.Shree Steel
Geetanjali hardware
Suman Stores
Kamakshya Udyog
Goel Traders
Dealers of Ambari
Jyoti Hardware,
Sunny Enterprise, Shanti bhandar
Steel House at A.T. Road
Commission agents and other hardwares at Hatigaon, Narengi, Sixmile, Adabari area in
Guwahati.

61